Hour 1 – What’s Driving The Continued Move Into Safe Haven Assets
It was quite the end to the week for trade and markets. New tariffs on Mexico and more tensions with China put pressure on equity markets and drop up safe haven assets. We cover all of these topics in the first hour of the show.
Please keep in touch by emailing me at Fleck@kereport.com. I am happy to discuss and reach out to any companies and guest that you are interested in.
- Segment 1 – An extended conversation with Axel Merk, President of Merk Investments. We discuss everything from US/China trade war, inflation, and what the bond market is telling us about the next Fed move.
- Segment 2 – Marc Chandler, Managing Partner at Bannockburn Global ForEx provides his thoughts on the new tariffs on Mexico. We also look ahead to next week and the news that will drive markets.
- Segment 3 – Jayant Bhandari was just on site visits for Novo Resources and Irving Resources. He shares his thoughts on these stocks as well as an arbitrage opportunity that he is investing in.
- Segment 4 – Josef Schachter, Founder of The Schachter Report has been calling for this pullback in oil. He updated us on his targets and areas of opportunity coming up.
Exclusive Company Interview This Week
- Sun Metals – Drilling For High-Grade Copper In BC
- Riverside Resources – Answering Your Questions On The BHP Exploration Agreement
- First Cobalt – Refinery News – Glencore to Support Restart and Possible Doubling Of Capacity
- Great Bear Resources – More Information On A New High Grade Gold Discovery
- Novo Resources – Updates on Karratha, Beatons Creek, and Egina
Couldnt agree more! I NEVER miss a single day
from WallStForMainSt:
https://youtu.be/XE_gxaWOKP8
About 24.30 How to play tariffs, agriculture, gives a few companies to consider and why.
Gold miners 32.50 interesting view.
Interesting gold action:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=10&mn=0&dy=0&id=p86321152186&a=637460713
I’ve stressed several times that the 600 week MA better hold and it has done so very well:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=3&mn=11&dy=6&id=p96612305223&a=660672741
The bullish potential here should be obvious:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=7&mn=5&dy=0&id=p39495468932&a=518191187
We might see a little resistance in the 1322 area:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=6&mn=5&dy=0&id=p63120345547&a=543567821
What a difference a couple of days can make:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=1&dy=0&id=p13532923351&a=652095990
The gold miners bulls won the battle for the 200 day MA:
https://stockcharts.com/h-sc/ui?s=%24GDM&p=D&yr=1&mn=0&dy=18&id=p2857161821c&a=630922644
Despite its silver-related components, even the XAU was able to take back its 200 day MA:
https://stockcharts.com/h-sc/ui?s=%24XAU&p=D&yr=1&mn=3&dy=18&id=p96080520815&a=618511960
The coming week has the clear potential to be very good for the bulls:
https://stockcharts.com/h-sc/ui?s=%24HUI&p=W&yr=5&mn=7&dy=22&id=p31157215281&a=573480104
Important GDX Fibonacci fan support held strong on the backtest:
https://stockcharts.com/h-sc/ui?s=GDX&p=W&yr=7&mn=5&dy=0&id=p04279873800&a=524423306
I highlighted the following AG supports over a week ago and they have held:
https://stockcharts.com/h-sc/ui?s=AG&p=D&yr=1&mn=3&dy=0&id=p7151263651c&a=578542926
ISVLF looks ready to confirm the strength in the gold miners:
https://stockcharts.com/h-sc/ui?s=ISVLF&p=W&yr=3&mn=6&dy=9&id=p2784906510c&a=642608464
I don’t buy new electronics. I’m not putting money in the pockets of the giant companies anymore. They disdain and hate my values. Why do I want to give them anything?
Gold Breaks and Closes Solidly Above $1300.00
May 31, 2019 – Gary Wagner #TechnicalAnalysis #Charts #VIDEO
https://thegoldforecast.com/video/gold-breaks-and-closes-solidly-above-130000
Ira Epstein’s Metals #Video (5 31 2019)
Technical Analysis, Gold, Silver, Copper, Platinum
Platinum & Palladium Price Update
iGold Advisor – May 29, 2019 #VIDEO #TechnicalAnalysis #Charts
WILL #SILVER GET SMASHED DOWN EVEN LOWER BY THE MARKET CRASH?
– we review the latest #charts and COTs…
Clive Maund – Thursday, May 30, 2019
IS SILVER THE SLEEPER RALLY SETUP OF A LIFETIME?
June 2, 2019 – Chris Vermeulen
https://www.thetechnicaltraders.com/is-silver-the-sleeper-rally-setup-of-a-lifetime/
Yes
speaking of Silver Sleepers, looks like Alexco’s news is now starting to get a bit of attention today….
Goldfinger has a nice chart out regarding this breakout:
______________________________________________________________________
@Goldfinger – “Canada’s next #Silver producer, Alexco Resources, with a powerful breakout this morning. Production decision at Keno Hill imminent. I’ll be visiting Alexco in mid-July during the #Yukon mining tour sponsored by the YMA. $AXR”
(AXU) (AXR) Alexco Reports First Quarter 2019 Results
by @newswire on 8 May 2019
Q1 2019 Highlights
“Overall, Alexco reported net income of $1.2 M ($0.01 per share) for Q1 2019 and income before tax expense of $1.8 M including net non-cash adjustments of $3.5 M. In the same period for 2018 the Company incurred a loss of $3.6 M (including non-cash costs of $2.0 M) before taxes. The increase in net income in the 2019 period compared to the 2018 period was mainly attributed to non-cash fair value gain of $5.5 M on the embedded derivative related to the Wheaton Precious Metals Corp. streaming agreement. ”
“The Company’s cash and cash equivalents at March 31, 2019 totaled $6.4 M compared to $8.6 M at December 31, 2018, while net working capital totaled $7.1 M compared to $10.1 M at December 31, 2018.”
“Subsequent to quarter end, Alexco completed a private placement, on a bought deal basis, of 1,842,200 flow-through common shares at a price of $1.90 per share for gross proceeds of $3.5 M. The flow-through common shares comprise: (i) 1,579,000 flow-through shares with respect to “Canadian exploration expenses” (the “CEE Shares”) priced at $1.90 per CEE Share; and (ii) 263,200 flow-through shares with respect to “Canadian development expenses” priced at $1.90 per CDE Share.”
“On February 14, 2019 Alexco extended the availability period of draw-down on its credit facility with Sprott Private Resource Lending, L.P. (“Sprott”) to August 23, 2019 from February 23, 2019 by issuing to Sprott 171,480 common shares of Alexco.
> MINE OPERATIONS AND EXPLORATION
“The Company announced the results of an independent pre-feasibility study (“PFS”) on its 100% owned Keno Hill Silver project (see press release dated March 28, 2019 entitled “Alexco Announces Positive Pre-Feasibility Study for Expanded Silver Production at Keno Hill Silver District”) and on May 8, 2019 the Company released an independent technical report.”
“Assay results were announced from the 2018 reconnaissance drill program at Husky, No Cash, Townsite, Eagle, Bellekeno South and Black Cap comprising 26 holes for 7,687 meters (see news release dated January 21, 2019, entitled “Alexco 2018 Reconnaissance Drilling Confirms Continuation of Bermingham Mineralization at Depth and Identifies an Offset Extension, Identifies New Gold Targets”).
>> ALEXCO ENVIRONMENTAL GROUP
“AEG recognized revenues of $7.2 M for Q1 2019 for a gross profit of $1.5 M achieving a gross margin of 20%, compared to revenues of $2,764,000 for the three month period ended March 31, 2018 for a gross profit of $830,000 achieving a gross margin of 30%. AEG incurred an operating loss before taxes for Q1 2019 of $52,000 excluding non-cash costs of $136,000 (see Note 21 in the financial statements for the three month period ended March 31, 2019).”
https://ceo.ca/@newswire/alexco-reports-first-quarter-2019-results
Looks like the real deal…
https://stockcharts.com/h-sc/ui?s=AXU&p=D&yr=1&mn=3&dy=0&id=p97142812579&a=593596651
Resistance just above…
https://stockcharts.com/h-sc/ui?s=AXU&p=W&yr=2&mn=5&dy=0&id=p47108340976&a=595941871
Good Alexco charts Matthew, and nice to see where resistance is hovering above.
There was a gap up as well, so maybe it will need to bump it’s head on resistance, come back and fill the gap, and then move higher.
Then again, some gaps don’t get filled for a long time on a breakout move, so depending on metals prices and news flow and momentum, it could get above resistance and then really stretch its legs…
I think the gap is extremely likely to remain unfilled.
https://stockcharts.com/h-sc/ui?s=AXU&p=W&yr=3&mn=3&dy=22&id=p84743828522&a=668627322
Nice charts. Yeah, on the weekly it looks like the gap up started at a reasonable spot of support and took off from there, so it may just run from there.
Thanks Ex. I think it could retrace part of the move we’ve seen so far but the gap-fill would surprise me.
GREAT INFO…………….IMO…………thanks…….
I enjoyed the charts from Chris V…..thanks again…
Thanks OOTB. Nice to see a little activity in Gold and watching to see when Silver will wake up and surprise folks. Cheers!
Yes, …Nice to see gold perk up….
And for Silver…..Hope the time frame is correct…
As incredible as it might seem, we believe Silver is setting up another High Price Breakout pattern that should conclude within the next 2 to 4 months with a price high near $22.50 to $24.00
If Silver breaks out to $22-$24 in the next 2-4 months as that article and analysis predicts, then many of the sleep silver mining stocks are going to rock out.
The silver miners will go berserk if silver does that.
Everyone here……deserves a break out……..to REAL HIGH LEVELS………jmo
The gold miners index rallied back to two broken support lines but I do not think the move is just a backtest…
https://stockcharts.com/h-sc/ui?s=%24GDM&p=D&yr=1&mn=2&dy=0&id=p02417245663&a=577064562
Gold made it precisely to speed line resistance…
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=1&dy=0&id=p13532923351&a=668461006
Gold backtested its 600 day MA and EMA for a month before deciding to show the bears how wrong they are…
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=0&dy=13&id=p42448847581
Quite a move by GLD in the last 3 trading sessions. Gold is getting a bid, likely due to all the trade war tensions with China and now Mexico.
Good to see the safe haven appeal is still there. If this geopolitical trade charade continues further, it may remind more of the generalist investors to have a small allocation to the yellow metal as portfolio insurance, and they likely would gravitate towards vehicles like GLD for ease of allocation and trading.
I expect silver to catch up quickly once gold is overbought.
Makes sense. Silver’s move usually lags Gold’s initial move, and then it plays catch-up and outperforms once it gets moving.
ALL Great charts……..jmo
Thanks….Matthew……..as always…….
Thanks Jerry
The following chart says sell stocks, buy miners. DIA is down 22% versus GDX since last September but you wouldn’t know it based on sheeple sentiment…
https://stockcharts.com/h-sc/ui?s=DIA%3AGDX&p=W&yr=4&mn=9&dy=6&id=p72620781526&a=636382926
From Bubba…at kitco….today
On Friday, we wrote that the pattern for gold was changing right before our very eyes and a break over $1,300 could signal the start of the next rally. Here we are with a strong finish on Friday and a big rally this morning.
Treasury yields are collapsing, the yield curve is inverting, and it appears clear we are in the early stages of a recession. Equities are headed lower and are firmly in a downtrend. Although we are expecting a dead-cat bounce in equities, they are going significantly lower.
It now appears the metals are the place to be. The miners have started to pick up steam and new money is flowing in. I would warn about chasing the metals higher here. If this is the start of the next leg up, there will be a pullback to buy. From a technical trade, they have gone too far too fast. We are looking for a pullback to $1,300-$1,310 before getting aboard.
I would say……..better get on board …..stocks rolling over, and the trade with china and mexico and everyone else, is not looking good…………jmo
Politically, the morons in Washington have lost it.
Bubba’s right, the pattern changed quickly right before our eyes.
Waiting for a pullback in 2016 was a mistake that many made but this move will probably be very different.
I think you are correct on…..”but this move will probably be very different.”
THe FANGS are not looking so good…right now….
Thank you to KER!….The most timely and deeply knowing of their special areas!…I am a news junkie and KER is my first stop each day when opening up the charts …..